James told People (because, of course) he visitedJoe on Friday, adding, “He is doing as well as can be expected. I would say that he is adjusting very well. I know that he misses Teresa and their four daughters immensely, but Joe will get through this, just like Teresa did.”

And as expected, this all has to do with her ongoing bankruptcy legal drama. See back in 2009, Teresa and hubby Joe Giudice filed bankruptcy to the tune of over $11 million in debt. However, almost a year later, their bankruptcy trustees alleged that Teresa knowingly withheld assets, including a $250,000 advance for her best-seller Skinny Italian and a business bank account.

An offense lawyers reveal could easily land her in prison for six months to a year. In fact, in unusual Teresa fashion, she actually spoke to the mag about the bankruptcy case. “I wish I could make this all go away,” admitted a clearly shaken Teresa, who insists any omissions were accidental, “but all I can do is take this one day at a time.”

Legal experts however add that Teresa, 39, is living on borrowed time. She and Joe were originally due to appear in court to face allegations of bankruptcy fraud on July 14, but the proceedings have now been postponed, giving her extra time before she faces the possibility of being torn from her daughters.

And unfortunately for Teresa, an attorney say it’s her own fault, even if she didn’t intend to commit a crime. “Teresa had her book contract a week before bankruptcy papers were filed but waited until a month after to sign it.” notes New Jersey lawyer Eric Lubin, who isn’t involved with the case.

“It seems as though she was avoiding signing the contract so that the money would come to her after the bankruptcy petition was filed. How could anyone forget that they have $250,000 coming to them?” In bankruptcy, everything a debtor owns before filing goes toward paying off debts. Anything earned after filing, the debtor can keep.

Meanwhile, bankruptcy trustees have also raised questions about $100,000 in deposits associated with Teresa’s online boutique, TGFabulicious.com. Because of that, Teresa “could be looking at life-altering consequences here,” cautions James Leonard, another New Jersey lawyer.

As for Teresa, she continues to keep her head up high while the legal drama looms on. “I’ve worked hard to brand myself,” she tells Life & Style. “I have no fears… Hopefully everything is going to be good,” adds Teresa.

Photo credit: WENN

TELL US – THOUGHTS ON THIS REPORT? DO YOU THINK TERESA KNOWINGLY WITHHELD ASSETS OR WAS IT AN INNOCENT MISTAKE?